Here are some bold predictions for the future of US real estate markets in 2039!
Commercial real estate is an investment sector closely tied to the way people work, live, trade, and do business. The evolution of these basic human needs is bound to have an impact on the evolution of commercial real estate overtime, hosted by numerous trends, and driven by multiple factors, according to Todd Tretsky of CRE-Finance LLC.
If you are into commercial real estate, here are some bold predictions for the future of the US real estate market in 2039 coming from the mortgage professionals at CRE-Finance LLC and other influential people in the field:
#1 Shopping Malls will Go Extinct
With the e-commerce industry growing popular with each passing day, the conventional means of hitting the malls for shopping is expected to go out of fashion. Demanding lifestyle of people would require them to opt for time saving methods incorporated in the daily routine.
Online retailing hitting a hard blow to shopping malls means investment into malls could turn out to be a risk if repurposing is not done in due time to help the property stay profitable, states Tretsky.
#2 Brick-and-Mortar Business Will Need to Make Amendments
Brick and mortar stores will need to make changes to keep pace with changing consumer behaviors for shopping and buying. Innovation being the need of the hour, retailers would have to make the use of technology and integrate omni-channel shopping with the physical experience.
Similar to what Apple stores are doing these days, a consumer can touch and feel the product for as long as they want and then make a purchase, or go home to research further on it and place an online order for an overnight delivery. Warehouses will grow in importance to keep stock of the products that the consumer gets interested in buying. Bigger and better warehouses will be needed to cater to increased activities in the industrial sector. Look at what Amazon CEO Jeff Bezos announced with their drone-like "octocopters" that Amazon is developing.
#3 Heightened Demand for Medical Facilities
The baby boomer population is going to turn around 75 and the construction world will be largely driven by its influence. The aging population will need a lot more medical facilities making commercial real estate heavily focused on the provision of medical-related facilities including food groups for senior citizens.
#4 More Megacities and Urbanization
In 2039, the entire world will be significantly more urbanized and there will be a lot more megacities. As location and amenities would go important for businesses, they would look to the charms of the cities for positioning themselves and attractive younger crowds from the multi-residential stands.
The new generation workforce would have different needs as well. The office buildings and workplaces would need to incorporate space for having fun and taking breaks to cater to the work-and-play lifestyle.
#5 Suburbs will Aim to Replicate the City Experience
As popularly thought, suburbs won't simply disappear or die, in fact they would adapt into urban centers and mixed-use projects would be the new popular thing around. Rental, office, and retails components would be fitted into the same building or project to replicate the city experience. Suburbs will have altered definitions and made more thoughtfully.
According to Tretsky, the future would demand smart buildings and increased use of modern technologies to create a technology friendly environment. Brace up for the changes ahead!
If you have any questions regarding commercial real estate or are seeking financing, then contact Richard Tretsky or Todd Tretsky at 855-515-5585 or visit us at www.cre-finance.com